July

2023

Monthly Cement Dispatches

Saudi Cement Sector | June 2023

Eqity Analyst
Ahmed AlMutawah
+966 11 2256250
a.almutawah@aljaziracapital.com.sa
 July 2023
Monthly Cement Dispatches
Saudi Cement Sector | June 2023

Cement Dispatches for June 2023

June-23 recorded a decline of 18.1% as demand is slowing: Domestic cement dispatches for the month of June-23 stood at 3.53mn,
posting a decrease from June-22 level of 4.30mn tonnes by 18.1%Y/Y, and a monthly decrease of 10.5%; as constructions activities are
slowing. Total export dispatches stood at 541k tonnes compared to 807k tonnes in June-22, representing a decrease by 33.0%Y/Y. Clinker
inventories stood at 38.55mn tonnes in June-23; showing an increase by 8.1%Y/Y and by 2.4% on a monthly basis, the highest level since
Oct-20. In 6M-2023, local dispatches decreased by 8.3%, reaching to 22.7mn tonnes, compared to 24.79mn tonnes in the 6M-2022.
Meanwhile, export sales in 6M-2023 decreased slightly by 2.2% reaching to 4.11mn tonnes, compared to 4.20mn tonnes in 6M-2022.
Sales/clinker production ratio stood at 85.0% during June-23, where Northern cement registered the highest ratio at 133.7%.

Change in Cement Dispatches (Domestic Sales) Cement and Clinker Exports for June-23
5,500 50.0%
4,733

4,538

200
4,395
4,376
4,304

4,285
4,261

4,215

4,172

3,937

4,500 30.0% 168

3,672

156
3,525

150
3,500 10.0%
2,597

2,500 -10.0% 100

1,500 -30.0% 61 55
50 39
500 -50.0% 29 27
Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

6
0
Saudi Yanbu Arabian Northern Southern AlJouf Najran Eastern
Dispatches ('000) - LHS M/M Growth (%) - (RHS)
Total Exports June-23 ('000)
Source: Yamama a Cement, AlJazira Capital Source: Yamama Cement, AlJazira Capital

Domestic cement dispatches decreased by 18.1%Y/Y, and decreased Cement and clinker exports reached to 541k tonnes in June-23
by 10.5% on monthly basis in June 2023. compared to 807k tonnes in June-22, recording a decrease by
33.0%Y/Y.

Utilization Rate Change in Clinker Inventories

38,545
68.0%
39,000 5.0%
37,646
67.5%
38,000 4.0%
36,784
35,986

67.0% 37,000 3.0%

35,798
35,789

35,472

35,146
35,130
35,098
35,061

36,000 2.0%
34,800

66.5%
67.8%

1.0%
67.7%
67.6%

35,000
66.0%
67.2%

67.1%

0.0%
66.9%

66.9%
66.7%

34,000
66.5%

-1.0%
66.2%

65.5%
66.1%

66.0%

33,000
65.7%

-2.0%
65.0% 32,000 -3.0%
May-23
Aug-22

Sep-22

Nov-22

Dec-22

Feb-23

Mar-23
Jan-23

Jun-23
Oct-22

Apr-23
Jul-22

64.5%
May-23
Aug-22

Sep-22

Nov-22

Dec-22

Feb-23

Mar-23
Jun-22

Oct-22

Jan-23

Apr-23

Jun-23
Jul-22

Total Invetories ('000) - (LHS) Change M/M (%) - (RHS)

Source: Yamama Cement, AlJazira Capital Source: Yamama Cement, AlJazira Capital

The total utilization rate of the cement sector in Saudi Arabia At the end of June-23, clinker inventories stood at 38.5mn tonnes,
stood at 66.2%, a decrease by 61bps on monthly basis, and an recording an increase of 8.1%Y/Y, and an increase of 2.4% on
increase by 50bps compared to June-22. monthly basis.

2 ©All rights reserved

 July 2023
Monthly Cement Dispatches
Saudi Cement Sector | June 2023

Cement and Clinker Dispatches for June-23 (Domestic Sales) Cement and Clinker Dispatches for 6M-2023 (Domestic Sales)
700 20%

-10%
3,500 80%
10%
8%

600
60%

-10%
3,000
0%

-12%
500 40%
-20%

2,500
-10%

-22%
-26%

-10%
400 2,000 20%
-24%

18%
-7%
-20%
-27%
-7%

300 1,500 0%

-9%

-21%
9%

-13%
-30%

-40%
37%
-31%

-20%
1%

-20%
-35%

1,000

-15%
-4%

200
10%

-0%
-38%

-35%
-40%

70%
-17%
-32%
-54%
500 -40%

7%
100 -50%
0 -60%
0 -60%

Yamama
Southern
Saudi
Qassim
Yanbu
Riyadh
Arabian
Najran
Eastern
City
United Cement
AlSafwa
Hail
Tabuk
AlJouf
Northern
Umm AlQura
Yamama
Southern
Saudi
Qassim
Yanbu
Riyadh
Arabian
AlSafwa
Najran
Eastern
City
United Cement
Hail
AlJouf
Tabuk
Umm AlQura
Northern

Cement Dispatches - (LHS) Y/Y Change (%) - (RHS) Cement Dispatches - (LHS) Y/Y Change (%) - (RHS)

Source: Yamama Cement , AlJazira Capital Source: Yamama Cement , AlJazira Capital

United Cement and Yamama Cement recorded the highest For 6M-23, Northern Cement and United Cement recorded
increases in dispatches by 9.6%Y/Y and 8.5%Y/Y respectively. On the highest increase in dispatches by 70.4%Y/Y and 37.1%Y/Y,
the other hand, Umm AlQura Cement and Hail Cement recorded respectively. Meanwhile, Hail Cement and Umm AlQura Cement
the largest declines of 54.3% Y/Y and 38.0%Y/Y, respectively. posted declines of 40.0% Y/Y and 35.2%Y/Y, respectively.

Sales / Clinker Production for June-23 Clinker Inventories – June-23

160% 6,000 60%
31%

140% 5,000 40%

120%
4%

4,000
35%

20%
16%
4%

-9%

100%
-13%
45%

3,000 0%
49%

80% 85%
5%

-12%

60% 2,000 -20%

6%
115%

-26%
-14%
134%

109%
107%
102%

-49%
-6%
20%

40%
93%

1,000 -40%
87%
84%
80%
77%
74%
73%
69%
69%
63%
59%

20%
58%

0 -60%
Yanbu
Southern
Umm AlQura
Saudi
Eastern
Yamama
Hail
Arabian
Najran
Qassim
United Cement
Tabuk
Riyadh
AlJouf
AlSafwa
City
Northern

0%
Northern
AlSafwa
Yamama
Yanbu
Hail
United Cement
Riyadh
Qassim
Southern
Saudi
Arabian
Eastern
AlJouf
City
Najran
Tabuk
Umm AlQura

Companies Average sales/clinker production Clinker Inventories (LHS) Y/Y Change (%) - (RHS)

Source: Yamama Cement , AlJazira Capital Source: Yamama Cement , AlJazira Capital

Northern Cement and AlSafwa Cement showed the highest sales/ Inventory levels of Northern Cement and Riyadh Cement declined
clinker production ratios of 133.7% and 115.4%, respectively. On the by 48.6%Y/Y and 25.6%Y/Y, respectively. On the other hand, Najran
other hand, Umm AlQura Cement and Tabuk Cement recorded the Cement posted the highest increase of 49.1%Y/Y in its inventory
lowest sales/clinker production ratios of 58.0% and 58.7% respectively. levels, followed by Arabian Cement; which increased of 44.7%Y/Y.

3 ©All rights reserved

 July 2023
Monthly Cement Dispatches
Saudi Cement Sector | June 2023

Market Share – June-23 (Domestic Sales) Market Share TTM

18.0% 5.0%
4.2%

Yamama
4.0%
2.5% 2.2%
16.0% Southern 1.9%
3.0% Saudi 2.8%
14.0%
3.1% 13.6%
0.0%

2.0% Qassim
12.0%
Yanbu
-0.7%
-0.5%

10.0% 1.0% 4.2%

-0.7%

Arabian
1.0%

8.0% 0.0% Riyadh 4.2%

-0.8%

11.4%
1.0%

-3.0%
0.0%

Najran
0.8%

6.0% -1.0%
-0.9%
1.0%

-0.5% City 4.2%

0.1%

4.0% -2.0%
-1.4%
0.4%
Eastern
2.0% -3.0%
AlSafwa
4.9%
10.1%
0.0% -4.0% United Cement
5.2%
Yamama
Southern
Saudi
Qassim
Yanbu
Riyadh
Arabian
AlSafwa
Najran
Hail
Eastern
City
United Cement
AlJouf
Tabuk
Umm AlQura
Northern

Hail
Tabuk
6.5% 8.6%
AlJouf
Umm AlQura 6.6% 8.0%
Northern
Market Share June-23 (LHS) Y/Y Change - (RHS)

Source: Yamama Cement , AlJazira Capital Source: Yamama Cement , AlJazira Capital

Yamama Cement and Southern Cement recorded the highest market On a TTM basis, Yamama and Southern Cement recorded the highest
share in June-23, of 16.0% and 10.9%, respectively. Meanwhile, market share of 13.6% and 11.4%, respectively. Followed by Saudi
Northern Cement and Umm AlQura Cement, both recorded the Cement with a market share of 10.1%.
lowest market share of 1.8% and 1.9%, respectively. Yamama Cement
increased its market share by 4.2% Y/Y while Hail Cement market
share decreased by 3.0% Y/Y.

EV / Tonne (SAR)

1,650
1,462
1,500
1,350 1,272
1,175 1,174
1,200
1,050 972 967
893 891 860
900 786 773 853
750 648 631
600 454 421
450
300
Qassim Yamama Eastern AlJouf Northern Saudi Yanbu Riyadh City Southern Arabian Umm Hail Tabuk Najran
AlQura

EV/Ton Sector's EV/Ton

Source: Bloomberg, Yamama Cement , AlJazira Capital

Qassim Cement recorded the highest EV/Ton of SAR 1,462 followed by Yamama Cement with an EV/Ton of SAR 1,272. Meanwhile, Najran Cement
recorded the lowest EV/Ton of SAR 421.

4 ©All rights reserved

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Head of Sell-Side Research - AGM

Jassim Al-Jubran
+966 11 2256248
j.aljabran@aljaziracapital.com.sa

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